A rise in employers' national insurance contributions will hit hospices, GP surgeries and care homes Changes to employers’ national insurance could lead to hospices shutting and more pressure being put on the NHS, an MP has warned. The ECHO reported last week that hospices like Zoe's Place are set to be hit by a hike in National Insurance contributions, deepening their financial burden. Chancellor Rachel Reeves announced in the Budget that there will be an increase in national insurance contributions for employers.
While the NHS and other public sector bodies are exempt from the rise, hospices - which provide NHS services but are designated as charitable organisations - are not protected. GP surgeries run as small businesses and care homes are also likely to be affected by the tax hike. Hospice funding in this country has been put under the spotlight over the past few weeks following the shock announcement on October 7 that Zoe's Place baby hospice in West Derby would close its doors without a massive injection of funding.
On average, hospices receive just 30 percent of their funding from the government , and are dependent on donations from the public and philanthropic organisations for the rest. Speaking in parliament this week, MP Angus MacDonald said one hospice in his constituency faces paying an extra £177,000 per year due to the rise, and warned that the Marie Curie is expecting to pay an extra £3 million annually. Mr MacDonald said: “The Government’s planned in.